Subaru has been somewhat of a parodox in the automotive world. The stereotypical crunchy, nature-living Subaru buyer does not jibe with Subaru vehicles, which have been behind the times on fuel economy. The low-range Solterra is the one EV effort thus far. And none of Subaru's big-selling SUVs above the Crosstrek offer even a hybrid. But that's about to change.
Tomoaki Emori, Subaru's chief general manager of global planning, mentioned that Subaru needs "strong hybrids and electric vehicles" and that the brand will need to offer "several models in (their) EV lineup" in America by 2025; America typically accounts for around 70% of Subaru's sales globally. And Subaru just provided more details on those plans. Here is what we know.
Why has Subaru fallen behind on hybrids and EVs?
Much of Subaru's technical development is tied in with Toyota, by far the largest Subaru shareholder with a 20% holding. Toyota has been the loudest EV skeptic among major car brands — only the heavily related Toyota bZ4X, Solterra (built by Toyota) and Lexus RZ have emerged thus far. And Subaru setting sales record after sales record without hybrids (before Pandemic-related supply chain issues) mitigated the need for them.
But Toyota is now making a hard pivot toward EVs themselves. The brand is pouring R&D into an onslaught of new EV battery technology, ranging from cheaper lithium iron phosphate batteries to solid-state units that could eventually achieve more than 900 miles of range. And according to Automotive News, Toyota is strongly considering sharing its new EV technology with partners like Subaru.
What are Subaru's EV plans for America?
Subaru announced plans to roll out four electric crossovers by 2026. All of the crossover EVs will be sold in America. And Subaru plans to sell them in volume. Dedicated EV lines at its Oizumi and Yajima plants in Japan should be able to produce a combined 400,000 EVs per year by 2028. 2026 is also the year Toyota plans to roll out its next-generation EV platform.
Subaru does not think the Federal Tax Credit will be an issue
Building EVs in Japan would leave Subaru vehicles ineligible to earn the Federal EV Tax Credit in America. But outgoing CEO Tomomi Nakamura does not believe that will be much of an issue.
“I wonder if American consumers choose their cars solely based on tax breaks,” Nakamura said. “Our U.S. customers are quality customers. We have a higher ratio of customers buying Subarus with cash, and we also have low loan and lease rates. We also keep our incentives at low levels."
Keep an eye on the next-gen Subaru Forester
Subaru is launching the new Crosstrek and new Impreza in 2023. Next up for an overhaul in 2024 (potentially for the 2025 model year) will be the Forester. Speculation is that it could share a hybrid powertrain with the RAV4 Hybrid (which would be a substantial power upgrade) and even get the RAV4 Prime's unit for a probably pricey PHEV option with 40-plus miles of EV range. We would bet an all-electric Forester will be among the electric crossovers Subaru plans to launch too.
